5.NEXT STEPSIf you’re new to the plan:Enroll and select your investments. Follow your plan’s instructions for enrolling and select a mix ofinvestments that closely matches your desired asset allocation.If you’re a current participant:1Review your current situation. You should firstknow how the money in your account is currentlyallocated. Look at your existing fund balances andfigure out what percentage of your total is investedin each asset class. (Your retirement savings planstatement contains this information.) Comparethat asset allocation with your desired allocation.Does it match? If not, proceed to step two.2Reallocate your existing fund balances. To arriveat your new allocation, you will have to rearrangeyour existing fund balances. If your balance isrelatively small or your current allocation is closeto your investment profile, this step may befairly easy: Simply follow your plan’s instructions fortransferring money from one option to another.3Move large sums gradually to avoid a bumpy ride.If you need to shift a substantial sum of money,you might consider moving it in stages instead oftransferring it all at once. By shifting yourmoney gradually, you may avoid exposing theentire amount to extreme fluctuations that mayoccur in the financial markets.4Adjust the allocations for upcoming contributions,too. Changing the allocation of your existing fundbalances does not necessarily mean that yourfuture contributions will be allocated accordingly.Don’t forget to change future allocations tosynchronize with your overall investment strategy.For all participants, both new and current:Make periodic adjustments to stay on course. Minor shifts in the stock market are common — and majorchanges sometimes come quickly. These changes can throw your allocation off kilter. Suppose your plancalls for 65% of your savings to be invested in stocks, but the market surges and raises your stock allocationto 75%. One possible solution: Get back on track by rebalancing your account once a year to “correct” for themarket’s behavior.It’s also a good idea to reassess your personal investment profile each year by retaking the quiz. That wayyou’ll stay in the driver’s seat. Your long-term goals — and not the market’s short-term ups and downs — willdetermine your investment course.Page 17
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